Average Salary by Age: What Workers Really Make in the U.S.

What does the typical American earn at ages 22, 45, or even 65? As careers unfold, income usually climbs, peaks, and eventually levels off — but exactly how, and when? 

In this article, we explore the latest data from the U.S. Bureau of Labor Statistics (BLS), SmartAsset, and research on financial literacy by age to reveal how median weekly and annual earnings shift across age groups in 2025. You’ll learn which age brackets now command the highest wages, how earnings evolve through early career, midlife, and into later years, and what underlying forces drive these trends. 

If you’re curious how your pay stacks up or what to expect at each life stage, read on.

Median Weekly & Annual Earnings by Age Group  

The U.S. Bureau of Labor Statistics (BLS) reports that median weekly earnings in 2025 vary widely by age. The numbers below represent full-time wage and salary workers in Q2 2025 (not seasonally adjusted), with annual estimates based on 52 weeks of work.

📝 Note: Annual figures are approximate and rounded to the nearest dollar.

Age Group	Median Weekly Earnings	Estimated Annual Earnings
16–19 years	$640	~$33,280
20–24 years	$782	~$40,664
25–34 years	$1,139	~$59,228
35–44 years	$1,351	~$70,252
45–54 years	$1,362	~$70,824
55–64 years	$1,296	~$67,392
65+ years	$1,198	~$62,296

Total (16+ years): Weekly — $1,196 | Annual — ~$62,192
📌 Source: Bureau of Labor Statistics

SmartAsset’s 2025 analysis shows nearly identical results, with only slight rounding differences:

Earnings generally follow a recognizable pattern across age groups:

✅ Pay starts relatively low during the yeen years and early 20s due to part-time jobs, entry-level positions, and limited experience.

✅ Income typically grows quickly through the late 20s and early 30s as workers gain skills, stability, and career advancement opportunities.

✅ Earnings peak between ages 45 and 54, averaging just above $70,000 annually, before gradually tapering off.

❌ After age 55, earnings begin to dip, often due to shifts into part-time schedules, reduced workloads, or early retirement choices.

✏️ Hypothetical Example: 

A worker earning $40,000 in their early 20s could see their pay rise into the $70,000 range by midlife. But if they cut back to part-time work after age 60, their annual income may fall closer to $60,000.

📝 Note: Median earnings for those age 65 and older remain above $1,100 per week in 2025. This reflects the growing trend of older adults extending their careers, either by choice or necessity, and highlights how retirement decisions can directly influence income at later stages of life.

How These Patterns Affect Retirement Savings

✅ Peak earning years are prime saving years. Higher incomes in the late 30s through mid-50s may create more room to increase employee contributions to retirement plans such as a 401k, Roth IRA, or traditional IRA.

✅ Earlier saving matters. Starting contributions during lower-earning years may still help build a foundation for long-term growth, even if the amounts are smaller. This is because savings have more time to potentially compound.

✅ Later-career income dips can reduce contributions. Moving to part-time work or retiring early may limit the ability to contribute the maximum amount to tax-advantaged accounts. Planning ahead during peak earning years can help soften the impact. 

✅ Extended careers can boost retirement balances. Continuing to work past age 65 could provide additional income and more time to contribute, delaying the need to withdraw from retirement accounts.

📝 Reminder: Contribution limits depend on income type (net income, net adjusted income, or gross income after self-employment deductions). Understanding how income is defined for your situation is important for accurate retirement planning.

Why Salaries Change Over the Life Cycle  

Earnings typically follow a predictable path: lower pay at the start of a career, rapid increases during mid-career, and a gradual decline in later years. These patterns reflect not only shifts in education and skills but also lifestyle choices, work intensity, and retirement planning priorities. Understanding this arc can help workers better anticipate when their peak earning years may occur and plan accordingly for saving and investing.

Early Career Growth (Ages 16–24)

Paychecks are modest at this stage due to limited experience and lower credentials. However, the jump in earnings as education levels rise is significant. In Q1 2025, adults 25+ without a diploma earned $743 weekly, compared with $1,754 for bachelor’s-degree holders — a 136% difference.

✅ Internships, apprenticeships, and entry-level jobs translate classroom skills into real-world earnings.

✅ Many openings in this range — around 19 million annually through 2024–34 — require postsecondary training, which sets up faster wage growth later on.

Because disposable income is typically lower at this stage, retirement contributions might be minimal. Yet even small contributions to a 401k or IRA early on can have a compounding effect over decades.

Mid-Career Peak (Ages 25–54)

This is when wages reach their high-water mark. Median weekly pay climbs from $1,139 for ages 25–34 to $1,362 for ages 45–54, the highest bracket in 2025. These prime years combine experience, specialization, and leadership roles, which drive both base salary and bonuses.

✅ Broader professional networks create advancement opportunities.

✅ Specialized skills compound in value, driving promotions and higher pay.

This period often offers the strongest opportunity to accelerate retirement savings. Higher incomes make it easier to max out 401k contributions, fund IRAs, or build taxable investment accounts.

Late-Career Plateau or Decline (55+)

Median earnings dip to $1,296 per week for ages 55–64 and $1,198 for 65+. Many older workers reduce hours, move to advisory or consulting roles, or become self-employed to gain flexibility.

✅ Part-time and “bridge” jobs become more common to supplement income.

✅ Social Security claiming, pension payouts, or phased retirement plans start coming into play.

This stage often shifts focus from accumulation to preservation. Workers may prioritize maintaining their savings, managing risk, or delaying retirement to maximize Social Security benefits. Even with lower wages, smart planning in this phase can significantly improve retirement readiness. 

Salary Differences by Gender, Race & Location  

Age is only part of the story. In 2025, differences tied to gender, race, and geography are large enough to rival the gaps between entire age brackets. Recognizing these patterns can help workers understand where to focus efforts — whether that means upskilling, negotiating, or relocating — to improve both nominal and real earnings.

Gender Pay Gap: Grows With Career Stage

Women’s pay tracks closer to men’s early on but diverges in prime career years, before narrowing after 55. This trend reflects career breaks, caregiving responsibilities, part-time shifts, and promotion bottlenecks. High-earning men also tend to retire earlier, which influences the older-age figures.

Age Group	Men (Median $/wk)	Women (Median $/wk)	Women’s Pay as % of Men’s
16–24	$797	$712	89%
25–34	$1,198	$1,055	88%
35–44	$1,502	$1,190	79%
45–54	$1,520	$1,189	78%
55–64	$1,417	$1,134	80%
65+	$1,267	$1,042	82%

📌 Source: US Bureau of Labor Statistics

Key drivers of this gap: 

For retirement planning, this means women often enter their peak earning years with lower lifetime earnings and may need to save a larger percentage of income to reach similar retirement targets.

Racial & Ethnic Pay Gaps: Persistent Across Ages

Differences by race and ethnicity remain notable across all age groups:

Group (16 +)	Median $/wk	% of White Median
Asian	$1,553	127 %
White	$1,225	100 %
Black	$991	81 %
Hispanic/Latino	$947	77 %

📌 Source: US Bureau of Labor Statistics

Asian workers top the scale, often due to higher representation in technology and healthcare fields. Black and Hispanic/Latino workers lag even after adjusting for education levels, reflecting differences in occupational mix, discrimination, and regional opportunity.

✅ Career impact: Pay gaps compound over time, affecting retirement contributions, Social Security credits, and access to employer benefits like 401k matching.

✅ Planning strategy: Addressing these gaps early through negotiating, certifications, or shifting into higher-paying fields can significantly boost long-term financial outcomes.

Where You Live: Nominal vs. Real Pay

State (2024 ACS)	Median Household Income	Regional Price Parity (2024)
District of Columbia	$108,210	110.8
Massachusetts	$99,858	104.3*
New Jersey	$99,781	108.9
Arkansas	$55,437	86.5
Mississippi	$54,203	87.3

*Massachusetts RPP rounded; BEA ranks it among the higher-cost states. Income figures are in nominal dollars.

📌 Source: United States Census Bureau

Prices also diverge. According to BEA Regional Price Parities (2024), California (112.6) and D.C. (110.8) sit 10–13% above the national price level, while Arkansas (86.5) and Mississippi (87.3) are 13–14% below.

📝 Note: A $70,000 salary in Little Rock can buy roughly the same goods and services as about $93,000 in Los Angeles when cost-of-living is factored in. Adjusting for purchasing power often narrows the gap between high-income coastal states and lower-income interior states.

What Shapes Your True Earning Power

Earnings often rise with age, but factors like gender, race, and location play a powerful role in how much of that income you actually keep or can invest. Pay differences affect far more than your paycheck. They influence how much you’re able to save for retirement, qualify for employer matches, or stretch your income in real terms.

Looking at these patterns together reveals why two people with the same salary might experience very different levels of financial security. Moving to a lower-cost area, pursuing new credentials, or negotiating better pay could all make a meaningful difference over time.

In Summary 

Earnings in the U.S. follow a recognizable rise-and-leveling pattern, with income generally peaking in midlife before tapering off as work slows or priorities shift. This trend can guide how you think about your earning potential at different stages.

Beyond the numbers, planning matters. Building skills, setting aside savings during higher-earning years, and considering cost of living when making career moves could all help strengthen long-term financial security. 

Looking at how much Americans save by age can also highlight how income patterns translate into real-world financial outcomes.

---

Disclaimer:

The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.

To access investment advisory services through Carry Advisors, you must be a client of Vibes on an eligible membership plan. For more information about Carry Advisors’ investment advisory services, please see our Form ADV Part 2A brochure and Form CRS or through the SEC’s website at www.adviserinfo.sec.gov.